Consumer Decision Making
chapter
4
Prepared by
Deborah Baker
Texas Christian University
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Learning Objectives
1. Explain why marketing managers should
understand consumer behavior.
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4
2. Analyze the components of the consumer
decision-making process.
3. Explain the consumer’s postpurchase
evaluation process.
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Learning Objectives (continued)
4. Identify the types of consumer buying
decisions and discuss the significance of
consumer involvement.
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4
5. Identify and understand the cultural factors
that affect consumer buying decisions.
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Learning Objectives (continued)
6. Identify and understand the social factors
that affect consumer buying decisions.
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7. Identify and understand the individual
factors that affect consumer buying
decisions.
8. Identify and understand the psychological
factors that affect consumer buying
decisions.
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1
Learning Objective
Explain why marketing managers
should understand
consumer behavior.
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1
Consumer Behavior
Processes a consumer uses
to make purchase decisions,
as well as to use and
dispose of purchased goods
or services; also includes
factors that influence
purchase decisions and
the product use.
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2
Learning Objective
Analyze the components
of the consumer
decision-making process.
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Consumer Decision-Making
Process
2
A five-step process used
by consumers when buying
goods or services.
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Consumer Decision-Making
Process
2
Need Recognition
Information Search
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps
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Evaluation
of Alternatives
Purchase
Postpurchase
Behavior
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Need Recognition
Result of an imbalance
between actual and
desired states.
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Need Recognition
Marketing helps
consumers
recognize an
imbalance between
present status and
preferred state
Internal Stimuli
and
External Stimuli
Preferred State
Present Status
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Stimulus
Any unit of input affecting
one or more of the five
senses:
sight
smell
taste
touch
hearing
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Want
Recognition of an
unfulfilled need and
a product
(or attribute or feature)
that will satisfy it.
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Recognition of Unfulfilled Wants
 When a current product isn’t
performing properly
 When the consumer is running
out of an product
 When another product seems
superior to the one currently used
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Information Searches
Internal
Process of recalling past
information stored
in the memory.
External
Process of seeking
information in the
outside environment.
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Information Search
Internal Information Search
 Recall information in memory
External Information search
 Seek information in outside
environment
 Non-marketing controlled
 Marketing controlled
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2
External Information Searches
Need Less
Information
Less Risk
More knowledge
More product
experience
Low level of interest
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Need More
Information
More Risk
Less knowledge
Less product
experience
High level of interest
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2
Evoked Set
Group of brands,
resulting from an
information search,
from which a buyer
can choose.
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2
Evaluation of Alternatives
Evoked Set
Evaluation of Products
Analyze product attributes
Use cutoff criteria
Rank attributes by
importance
Purchase!
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Purchase
To buy
or not to buy...
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Determines which attributes
are most important
in influencing a
consumer’s choice
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3
Learning Objective
Explain the consumer’s
postpurchase evaluation process.
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Cognitive Dissonance
Inner tension that a
consumer experiences
after recognizing an
inconsistency between
behavior and values
or opinions.
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Postpurchase Behavior
Cognitive Dissonance
?
Did I make a good decision?
Did I buy the right product?
Can minimize through:
Effective Communication
Follow-up
Guarantees
Warranties
Did I get a good value?
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4
Learning Objective
Identify the types of
consumer buying decisions
and discuss the significance
of consumer involvement.
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Types of Consumer Buying
Decisions
Routine
Response
Behavior
Limited
Decision
Making
Less
Involvement
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Extensive
Decision
Making
More
Involvement
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Five Factors influencing Decisions
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1. Level of consumer involvement
2. Length of time to make decision
3. Cost of good or service
4. Degree of information search
5. Number of alternatives considered
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Routine Response Behavior
 Little involvement in selection process
 Frequently purchased low cost goods
 May stick with one brand
 Buy first/evaluate later
 Quick decision
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Limited Decision Making
 Low levels of involvement
 Low to moderate cost goods
 Evaluation of a few alternative
brands
 Short to moderate time to decide
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Extensive Decision Making
 High levels of involvement
 High cost goods
 Evaluation of many brands
 Long time to decide
 May experience cognitive dissonance
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Level of Involvement
Previous
Experience
Factors
Determining
Level of
Involvement
Interest
Perceived Risk of
Negative
Consequences
Situation
Social Visibility
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Marketing Implications of
Involvement
High-involvement
purchases require:
extensive promotion
to target market and
good advertisement
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Low-involvement
purchases require:
in-store promotion
and eye-catching
package design
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Factors Influencing Buying
Decisions
Cultural
Factors
Individual
Factors
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Social
Factors
Psychological
Factors
CONSUMER
DECISIONMAKING
PROCESS
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BUY /
DON’T BUY
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Learning Objective
Identify and understand the
cultural factors that affect
consumer buying decisions.
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5
Culture
Set of values norms,
attitudes, and other
meaningful symbols that
shape human behavior and
the artifacts, or products, of
that behavior as they are
transmitted from one
generation to the next.
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Cultural Influences on Buying
Decisions
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Values
Language
Myths
Customs
Components of
American
Culture
Rituals
Laws
Material Artifacts
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Culture is...
Pervasive
Functional
Learned
Dynamic
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Value
Enduring belief that a
specific mode of conduct
is personally or socially
preferable to another
mode of conduct.
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5
Core American Values
Success
Materialism
Freedom
Progress
Core
American
Values
Youth
Capitalism
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Global Language Blunders
 Chevrolet’s “Nova” translated to “No Go”
 Coors “Turn it Loose” became
“Suffer from Diarrhea”
 Toyota’s MR2 sounded like a
swearword in French
 Coca-Cola in Chinese means
“bite the wax tadpole”
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5
Subculture
A homogeneous group
of people who share
elements of the overall
culture as well as
unique elements of
their own group.
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Social Class
A group of people in a
society who are considered
nearly equal in status or
community esteem, who
regularly socialize among
themselves both formally
and informally, and who
share behavioral norms.
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6
Learning Objective
Identify and understand the
social factors that affect
consumer buying decisions.
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Social Influences
Social Influences on
Buying Decisions
Reference
Groups
Family Members
Opinion Leaders
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Reference Group
A group in society that
influences an individual’s
purchasing behavior.
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Reference Groups
Primary
Direct
Secondary
Types of
Reference
Groups
Aspirational
Indirect
Non-aspirational
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Implications of Reference Groups
 They serve as information sources
and influence perceptions
 They affect an individual’s
aspiration levels
 Their norms either constrain or
stimulate consumer behavior
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Opinion Leaders
An individual who
influences the opinion
of others.
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Family
 Instigators
 Influencers
Purchase Roles
in the Family
 Decision-Makers
 Purchasers
 Consumers
Children
Influence
Purchase
Decisions
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7
Learning Objective
Identify and understand the
individual factors that affect
consumer buying decisions.
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Individual Influences
Individual
Influences
Personality
Self-Concept
Lifestyle
Gender
Age
Family Life Cycle
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Psychographics
The analytical technique
used to examine consumer
lifestyles and to categorize
consumers.
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“Types of Moms”
“June Cleaver” Moms
“Tug-of-War” Moms
“Strong Shoulders” Moms
“Mothers of Invention” Moms
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Learning Objective
Identify and understand the
psychological factors that affect
consumer buying decisions.
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Psychological Influences
Perception
Motivation
Learning
Psychological
Influences on
Buying Decisions
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Beliefs & Attitudes
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Perception
Process by which people
select, organize, and
interpret stimuli into
a meaningful and
coherent picture.
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Perception
Selective
Exposure
Selective
Distortion
Selective
Retention
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Perception
Selective
Exposure
Consumer notices certain stimuli
and ignores others
Selective
Distortion
Consumer changes or distorts
information that conflicts
with feelings or beliefs
Selective
Retention
Consumer remembers only
that information that
supports personal beliefs
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A Consumer’s Selective Exposure
Exposure to over 250
advertisement messages per day
Notices only
11 to 20 ads
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Marketing Implications of
Perception
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 Important attributes
 Higher price
 Brand names
 Quality and reliability
 Threshold level of perception
 Product changes
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Maslow’s Hierarchy of Needs
A method of classifying
human needs and
motivations into five
categories in ascending
order of importance.
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Motivation
Maslow’s
Hierarchy of
Needs
SelfActualization
Esteem
Social
Safety
Physiological
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Learning
A process that creates
changes in behavior,
immediate or expected,
through experience
and practice.
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Types of Learning
Types of
Learning
Description
Experiential An experience changes behavior
Conceptual
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Not learned through direct
experience
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Stimulus Generalization
A form of learning that
occurs when one response
is extended to a second
stimulus similar to the first.
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Beliefs and Attitudes
Belief
An organized pattern of
knowledge that an individual
holds as true about his
or her world.
Attitude
A learned tendency to
respond consistently
toward a given object.
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